Don't worry about any new large copper supply, the market will 'see through' it - Los Andes Copper
(Kitco News) - The run up in copper prices are starting to spur M&A in the sector, said Los Andes Copper CEO R. Michael Jones.
Jones spoke to Kitco correspondent Paul Harris at BMO's Global Metals & Mining Conference held in Florida last week.
Los Andes Copper (TSX-V: LA) is a Canadian company focused on developing the Vizcachitas copper-molybdenum porphyry project in Chile.
The company owns 100% of the Vizcachitas project, one of the largest advanced copper deposits in the Americas. Vizcachitas is to become Chile’s next major copper mine. The project is a copper-molybdenum porphyry deposit, located 150 km north of Santiago. The project is near other active miners.
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Jones pointed to the C$100 million Filo Mining-BHP Billiton deal showing that copper M&A is getting started.
Some large copper mines like Teck's QB2 and Ivanhoe Mining's Kamoa-Kakula are ramping up, but Jones is not worried about new supply depressing the market.
"There is some commentary out there that the 2023 copper price could cool down a little bit with some new supply coming on," said Jones. "Personally I think the market's going to see through that. I think there's a pretty strong acknowledgement that from 2025 to 2050 we're going to end up in a real crunch for copper due to the drive towards electrification."